Sky Gold and Diamonds Limited

Consumer Cyclical — Luxury Goods · NSE

₹1,065.00+₹63.55 (+6.35%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Sky Gold and Diamonds Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sky Gold and Diamonds Limited designs, manufactures, assembles, cuts, polishes, deals, markets, and sells gold and silver Jewellery in India. The company offers American diamonds, natural diamonds, lab-grown diamonds and colour gemstones.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees881

Annual revenue₹6,295 Cr

How does it make money?

Turns over ₹6,295 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 881 employees supports ₹7.15 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.15 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 35.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.1% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 29.5% and earnings to grow about 35.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+29.5%

Est. earnings growth+35.4%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +446% while net margin moved +171% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+446%

Margin effect+171%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 49.1x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 59.9x
✗ P/B of 13.77x is a steep premium to book

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

57/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

49.1x

3Y Median

59.9x

40 monthly readings · mean 63.9x · range 16.5x–118.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 3y median of 59.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 29% below the peer median of 69.2x.

vs. its own history

Fair

59.9x median over 40 months · -18%

vs. sector peers

Cheap

69.2x median of 4 peers · -29%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

37.3x

PEG

0.34

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 3.2% to 7.4% over 3 years.
Return on equity is rising
ROE has improved from 19.0% to 23.1%.
Return on capital is rising
ROCE has improved from 30.0% to 35.9%.
High return on capital employed
ROCE of 35.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 493% over 3 years, from ₹146 Cr to ₹869 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 739% against revenue up 446% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 822% against revenue up 446% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 44% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 35.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 3.2% to 7.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 29% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 739% against revenue up 446%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 57% a year✓ 76.0% CAGR
Latest reported year was 77.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹140 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 33%✓ 35.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹16,494 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

49.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

13.77x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹21.67

Profitable

Profitable on a per-share basis

ROE

23.1%

Strong

Strong capital efficiency

ROCE

35.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.72x

Moderate

Moderate leverage

Revenue Growth (YoY)

77.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

124.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹140 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

26.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.6%

Average

Average margins

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

1.77

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

99%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

866.6 / 822.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

93.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,154 Cr	₹1,745 Cr	₹3,548 Cr	₹6,295 Cr	+76.0%
EBITDA	₹37 Cr	₹78 Cr	₹208 Cr	₹465 Cr	+133.3%
EBITDA Margin	3.2%	4.5%	5.9%	7.4%	—
PAT (Net Profit)	₹19 Cr	₹40 Cr	₹133 Cr	₹275 Cr	+145.5%
EPS	₹1.73	₹3.5	₹9.44	₹18.06	+118.5%
ROE	19.0%	16.6%	19.4%	23.1%	—
ROCE	30.0%	26.8%	30.0%	35.9%	—
Total Debt	₹146 Cr	₹330 Cr	₹630 Cr	₹869 Cr	+81.1%
Free Cash Flow	-₹9 Cr	-₹181 Cr	-₹287 Cr	-₹140 Cr	—

🟢 Revenue has grown at 76.0% a year over 3 years.

🟢 EBITDA has grown at 133.3% a year over 3 years.

🟢 EBITDA Margin has risen from 3.2% to 7.4% over 3 years (+4.2 pts).

🟢 PAT (Net Profit) has grown at 145.5% a year over 3 years.

🟢 EPS has grown at 118.5% a year over 3 years.

🟢 ROE has risen from 19.0% to 23.1% over 3 years (+4.1 pts).

🟢 ROCE has risen from 30.0% to 35.9% over 3 years (+5.9 pts).

🔴 Total Debt has grown at 81.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,195 Cr

Total Liabilities

₹989 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹45 Cr

Capex

-₹95 Cr

Shareholding (proxy)

Institutional Holding

13.9%

Insider Holding

54.5%

Corporate Actions

Ex-Dividend Date

20 Sept 2023

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,084.67

+1.8% vs CMP

Target Range

₹1,042 – ₹1,144

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive2 mixed3 general

Sky Gold and Diamonds Limited (SKYGOLD.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 15 Oct

SKY GOLD AND DIAMONDS LTD Share Price - Live NSE: SKYGOLD Stock Price & Chart

Upstox, 16 Oct

Sky Gold surges 26% in October; stock up over 3-fold thus far in FY27

Business Standard, 15 Oct

Jewellery stocks to buy: Titan, Sky Gold, Kalyan Jewellers - Where should you invest ahead of Q2 results?

Livemint, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Sky Gold and Diamonds (NSEI:SKYGOLD) Stock Forecast & Analyst Predictions

Simply Wall Street, 29 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Sky Gold Q1 Profit Jumps to ₹105 Cr; Income Up 78%

HDFC Sky, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth · Profitability

MiddlingBusiness Quality · Financial Health · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑